Brazil's Banco Bradesco SA has embarked on its first-ever international acquisition by paying approximately US$ 500 million to buy BAC Florida Bank, which focuses on high-net-worth individuals in a move intended to close the gap with Brazilian rivals.
Based in Coral Gables, BAC Florida is controlled by Grupo Pellas, which was founded in 1877 in Nicaragua.
After the deal closes, Bradesco said its main goal is to provide a wide range of financial services in the United States to Bradesco clients and lure new customers to BAC Florida.
Bradesco Chief Executive Officer Octavio de Lazari said that the Brazilian bank's private banking clients have increasingly demanded diversification and greater access to global products.
“This move underscores our expansion not only in the U.S., but also in Latin America as a whole, as BAC has clients all over the region,” he said. Around 20% of BAC Florida's clients are Brazilian and 9% are American.
Still, Lazari said Bradesco is not seeking to build a retail base outside Brazil, but wants to boost its private banking business, which manages nearly US$ 50 billion in assets.